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Help Stop Delaware Tax Hikes

Delaware is the latest state to jump on the tax hike bandwagon with a plan to raise taxes on cigarettes and alcohol to bridge a looming budget gap. These so-called “sin taxes” seem to be the first place politicians go for some quick cash anytime they can’t pay the bills.

A recent proposal would raise alcohol taxes by two cents per 12-ounce can of beer, three cents per 5-ounce serving of wine, and 15 cents per bottle of liquor. The state cigarette tax would see a $.45/pack hike.

Delaware doesn’t need to go down the path of higher taxes that nickel-and-dime citizens. State legislators need only look up I-95 to New Jersey to see the effect cigarette tax hikes have on the budget. A Heartland Institute study shows that for two years running, the tax hikes have led to reduced revenues, not the millions the state was banking on.

New Jersey was left with a still gaping budget hole and businesses were hurt as smokers turned to the Internet, Indian Reservations, and the black market for lower priced cigarettes. This is a common scenario when legislators go after a minority of citizens for the funding woes of a state.

The picture is the same when you look at alcohol taxes. Raising those taxes hurts businesses as well. Already, the hospitality industry is bleeding jobs during this economic downturn. The last thing they need is higher taxes!

Governor Markell is hoping these proposals bring in over $20 million, a drop in the bucket when Delaware is facing an $800 million gap for 2010. But looking at other states who have tried the same tax and spend schemes, that money won’t be there and taxpayers will be again left holding the bag – only now with a much bigger price tag.

Take Action and tell your legislators to avoid these tax gimmicks altogether. Delaware has a great history of tax competition and economic liberty that has allowed that state to thrive. Keeping spending in check is a far better way to maintain long-term growth than going down the tax-hike road where other states have become stuck.

President Obama released his latest budget, a plan that would spend $4 trillion next year and $50 trillion over the next decade. The plan is packed with goodies from free community college to free preschool to increased infrastructure spending. The budget blows past the spending caps that Obama signed into law in 2011.

With solid control of both the House and the Senate, one of the clearest mandates delivered to the Republicans in Congress was to repeal the onerous takeover of health care known as ObamaCare. This year, the new Congress has the greatest opportunity yet to fulfill that mandate – by using the budget process known as reconciliation. As millions of Americans are forced to pay a fine for not buying health insurance, and with millions more still struggling with high premiums and deductibles, there is no reason why Republicans should not use a tactic that can place a full repeal of the so-called “Affordable Care Act” upon the president’s desk.

President Barack Obama has tipped his hand on how he plans to pay for his budget-busting spending increases. Media reports indicate that he plans to roll out several tax hikes totalling $320 billion in his State of the Union address on Tuesday, including raising the capital gains rate and imposing a tax on big banks' liabilities.

States that helped carry President Obama to victory in 2012, are now suffering at the hands of his signature legislation. Democrats hoping to avoid the repercussions of Obamacare are going to have a difficult time explaining away its failures in their own friendly states. Republicans are referring to it as the Blue State Obamacare Blues, with Colorado, Hawaii, Washington D.C., Oregon, Maryland, and Massachusetts all suffering varying degrees of embarrassment.

Washington, DC- President Obama finally released his Fiscal Year 2015 budget, reported to increase spending by 63 percent and add $8.3 trillion to the debt over the next 10 years. The increased spending will be paid for by $1.8 trillion in new taxes, on top of the $1.7 trillion in new taxes since Obama has entered the Oval Office.

The Senate is set to vote on the fiscally irresponsible budget negotiated by Rep. Paul Ryan (R-WI) and Sen. Patty Murray (D-WA) soon. FreedomWorks has issued a key vote notice declaring that we will deduct the scores of any member of Congress who votes for it on our congressional scorecard. As you may imagine, this news hasn’t thrilled the Washington establishment.

I attend Hillsdale College in southern Michigan. It’s a pleasant place, the people are friendly, the landscape of the college is beautiful, and the academic rigor is intellectually stimulating. Some of the things that I’ve learned since becoming a temporary Michigander are that the weather is utterly and truly unpredictable, that Ohio State fans are worst people on earth (their words, not mine), and that native Michiganders insist that “soda” is something you bake with and “pop” is the thing you drink. (They’re wrong.)

The Obamacare individual mandate will disproportionately affect those who can least afford it. Rather than simply allow people to buy health insurance if they wish to do so, the "Affordable Care Act" imposes a fine if you don't. But for many people without means, the insurance, even with subsidies, will be too expensive. The law amounts to a tax on being poor -- a Poor Tax.